Correlation Between Oatly Group and Nike
Can any of the company-specific risk be diversified away by investing in both Oatly Group and Nike at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oatly Group and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oatly Group AB and Nike Inc, you can compare the effects of market volatilities on Oatly Group and Nike and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oatly Group with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Nike.
Diversification Opportunities for Oatly Group and Nike
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oatly and Nike is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and Oatly Group is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oatly Group AB are associated (or correlated) with Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of Oatly Group i.e., Oatly Group and Nike go up and down completely randomly.
Pair Corralation between Oatly Group and Nike
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Nike. In addition to that, Oatly Group is 1.67 times more volatile than Nike Inc. It trades about -0.09 of its total potential returns per unit of risk. Nike Inc is currently generating about -0.03 per unit of volatility. If you would invest 9,257 in Nike Inc on September 3, 2024 and sell it today you would lose (1,380) from holding Nike Inc or give up 14.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Nike Inc
Performance |
| Timeline |
| Oatly Group AB |
| Nike Inc |
Oatly Group and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Nike
The main advantage of trading using opposite Oatly Group and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group position performs unexpectedly, Nike can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nike will offset losses from the drop in Nike's long position.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world |